Zacks Research Downgrades SPS Commerce (NASDAQ:SPSC) to Strong Sell

SPS Commerce (NASDAQ:SPSC) was downgraded by equities researchers at Zacks Research from a “hold” rating to a “strong sell” rating in a research report issued on Tuesday,Zacks.com reports.

Several other analysts also recently commented on SPSC. Needham & Company LLC reduced their price target on shares of SPS Commerce from $110.00 to $75.00 and set a “buy” rating for the company in a research report on Friday, May 1st. Citigroup lowered their price objective on shares of SPS Commerce from $84.00 to $76.00 and set a “buy” rating on the stock in a research report on Monday, May 4th. Stifel Nicolaus set a $60.00 price objective on shares of SPS Commerce in a research note on Friday, May 1st. Rothschild & Co Redburn set a $60.00 target price on shares of SPS Commerce and gave the company a “neutral” rating in a report on Thursday, April 16th. Finally, Cantor Fitzgerald set a $60.00 price target on SPS Commerce and gave the company a “neutral” rating in a research report on Friday, May 1st. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, seven have given a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and an average price target of $76.45.

SPS Commerce Price Performance

NASDAQ SPSC opened at $64.11 on Tuesday. The firm’s fifty day moving average price is $56.00 and its 200 day moving average price is $64.34. SPS Commerce has a 12 month low of $49.04 and a 12 month high of $143.55. The company has a market capitalization of $2.35 billion, a price-to-earnings ratio of 26.71 and a beta of 0.56.

SPS Commerce (NASDAQ:SPSC) last announced its quarterly earnings results on Thursday, April 30th. The software maker reported $1.10 earnings per share for the quarter, beating analysts’ consensus estimates of $0.97 by $0.13. SPS Commerce had a net margin of 11.92% and a return on equity of 12.43%. The firm had revenue of $192.12 million during the quarter, compared to analysts’ expectations of $192.50 million. During the same period in the previous year, the company earned $1.00 earnings per share. SPS Commerce’s quarterly revenue was up 5.8% compared to the same quarter last year. SPS Commerce has set its FY 2026 guidance at 4.730-4.760 EPS and its Q2 2026 guidance at 1.060-1.090 EPS. As a group, sell-side analysts forecast that SPS Commerce will post 3.35 earnings per share for the current year.

Institutional Trading of SPS Commerce

A number of institutional investors have recently modified their holdings of SPSC. Tudor Investment Corp ET AL increased its holdings in shares of SPS Commerce by 161.5% in the 3rd quarter. Tudor Investment Corp ET AL now owns 70,389 shares of the software maker’s stock valued at $7,330,000 after purchasing an additional 43,476 shares in the last quarter. Lightrock Netherlands B.V. purchased a new stake in SPS Commerce during the fourth quarter worth about $7,389,000. Bessemer Group Inc. boosted its holdings in SPS Commerce by 1,149.1% during the fourth quarter. Bessemer Group Inc. now owns 98,208 shares of the software maker’s stock worth $8,753,000 after buying an additional 90,346 shares in the last quarter. VELA Investment Management LLC purchased a new stake in SPS Commerce during the fourth quarter worth about $1,798,000. Finally, SG Americas Securities LLC grew its position in SPS Commerce by 205.3% during the fourth quarter. SG Americas Securities LLC now owns 39,753 shares of the software maker’s stock worth $3,543,000 after buying an additional 26,730 shares during the period. 98.96% of the stock is currently owned by hedge funds and other institutional investors.

About SPS Commerce

SPS Commerce, Inc is a leading provider of cloud-based supply chain management solutions that enable seamless collaboration between retailers, suppliers and logistics providers. Through its robust network, SPS Commerce connects trading partners with electronic data interchange (EDI) capabilities, helping businesses automate order processing, inventory management and fulfillment workflows. The company’s platform ensures data accuracy, accelerates order-to-cash cycles and reduces manual intervention, supporting a wide range of industries including retail, grocery, consumer goods and automotive.

The company offers a suite of services encompassing EDI, retail-ready compliance, order management and data analytics.